How to Prepare for the CFA Exam

This article will show you what to expect on all 3 levels of the CFA exams and give you the best tips on how to best prepare for each. Keep reading to learn how you can begin setting yourself up for success today.

• There are three exams, each with a recommended prep time of at least 300 hours.
• Level I covers foundational information, while Level II brings analysis into the process. Level III connects what you’ve learned to help tackle real-world problems.
• The CFA Program will give you a strong foundation in advanced investment analysis as well as real-world portfolio management skills.
• Those that prepare diligently and earn their CFA designation are recognized in the investment community as having the knowledge to thrive in a constantly evolving industry.
• Preparing for the CFA exams with Wiley’s CFA study materials gives you an advantage from start to finish.

Here are some of most helpful tips, tricks, and strategies you can use when preparing for any level of the CFA exam.

Develop a Plan

As you start with your exam preparation, it’s important to plan how far in advance you’ll want to begin to study. Decide how many hours you’re going to spend in total and break it down in a way that won’t overwhelm you but keeps you on track to reach your goal.

For example, you’ll want to take at least six months before exam day to begin to prepare. And with over 300 hours of preparation for each exam in front of you, be sure to plot out a daily or weekly study routine that is tailored to your schedule.

This should include everything you might encounter along the way, including the potential costs and time associated with traveling to the nearest exam location.

Equip Yourself With Study Materials

Preparing wisely means taking advantage of third-party study guides outside of the CFA Institute-assigned reading materials. And not all guides and materials are the same. Wiley offers a wide range of exam prep materials that are customized to fit your needs.

Wiley’s materials cover thousands of pages of study text and have helped students in over 100 countries reach their goals. Wiley’s authors have years of teaching experience and a knack for making the materials approachable and practical for candidates.

With explanatory graphs and a focus on each and every Learning Outcome Statement in the CFA Program curriculum, Wiley’s materials help you create the perfect study plan and set you up for success.

Set a Minimum Score Goal for Yourself

It can also be helpful to set a minimum pass rate for yourself as you begin to prepare. Although CFA Institute does not disclose the minimum pass rate on its exams, shooting for 75-80% on practice exams should provide the margin of error needed to pass on exam day.

Wondering how you’d do on the Level I CFA exam? Take our free practice exam now to find out.

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Familiarize Yourself With Your Calculator

Your calculator for the CFA exams is an essential tool. Find out what calculators are allowed and become as familiar as possible with the one you choose. The advanced functions your calculator offers will help you save time on exam day.

Join a Study Group

Joining a study group can be another valuable way to prepare for the CFA exam. Dedicated study groups can help with memory, discipline, and motivation and can even help you absorb more material than when you study alone. The key is finding a small, like-minded group that shares your goals and is able to meet together consistently and focus on exam preparation.

The CFA exam is broken down into three levels, each of which offers some unique challenges. The format for each CFA level varies, and the tests themselves are different every time they are administered, but each level has its own trends that are helpful to understand as you prepare.

For example, the Level I exam is typically made up of multiple-choice exam questions. With this in mind, you’ll want to spend plenty of time on practice questions to fine-tune your skills. The Level II exam is formatted with item sets made of up vignettes followed by 4 or 6 multiple-choice questions. This shift in format once again means you’ll need to prep with the testing format in mind, with plenty of mock exams along the way.

Finally, the Level III exam adds quite a bit of essay-style writing to the menu. The combination of essay and item set questions requires a good deal of writing, so be prepared to take what you’ve learned and apply it in practical ways through your words.

Get access to your CFA Level III Test Bank.

In addition to the exam date, the type of calculators allowed, and the exam length for the morning and afternoon sessions, you may also wish to determine travel times to the testing center. Get as much information as possible, including when you can arrive and how you will be able to store your materials that are not allowed in the testing room.

CFA Exam Level I Format

The Level I CFA exam format consists of 180 multiple-choice exam questions that are split between two 135-minute sessions. With this in mind, practice questions and time management are two of the most important things to keep in focus. Learn more from our team of experts.

Learn more about CFA Level I Preparation.

CFA Exam Level II Format

The Level II CFA exam uses an item-set format made up of a vignette that is followed by either 4 or 6 multiple-choice questions. Since you’ll need to refer back to the vignette before answering each item, be sure to take the time to fully understand each question before moving forward. You can prepare for this process with the help of mock exams. Prepare with Wiley here.

Learn more about CFA Level II Preparation.

CFA Exam Level III Format

The Level III CFA exam uses vignettes along with multiple-choice questions and essay questions. This combination of formats makes your previous experience valuable, with the added constructed response questions. Take a detailed look at Wiley’s Level III exam materials to help you prepare for the final CFA exam.

Learn more about CFA Level III Preparation.

Each CFA exam has multiple topic areas that are weighted differently. From corporate finance to alternative investments to derivatives and much more, taking the time to prioritize the right ones is an art and an important part of your preparation.

Look over the topic weights at each exam level as you prepare and prioritize the ones that are more heavily weighted. You’ll want to consider your strengths and weaknesses as it pertains to the topics and set aside extra time to tackle the ones you have less experience with.

You’ll be able to move faster through more familiar topics. But don’t neglect the topics that come easier, as every detail and study session makes a difference.

Learn more about CFA Exam Topic Weights.

Time management is also vital to consider as you prepare to pass each exam on your way to a CFA charter. At each level, you’ll want to figure out how much time per question to spend in order to ensure that you’re able to complete the entire exam.

For example, successful CFA Level I exam candidates typically take about 90 seconds per multiple-choice question. Level II will require an average of 12 minutes per 4-question item set and 18 minutes per 6-question item set.

Level III is split into two 2-hour-and-12-minute sessions and combines essay or constructed response questions with vignettes followed by item sets similar to those at Level II. With this in mind, you’ll want to develop a time per question approach. And since question length varies, one option is to use the number of minutes/points to help you assess how much time should be spent on each question.

If your study time doesn’t include a ton of practice, you’re leaving out an essential step. Wiley offers some of the best practice problems, practice exams, and prep courses to help you each step of the way. The study materials are great for individual as well as group practice and review.

The final 4 weeks before taking the CFA exam might be the most significant stretch of your exam prep. At each exam level, this last month of study is when you’ll focus on practice tests and getting your timing just right. It’s also where you’ll fine-tune your strategy of topic prioritization and double- and triple-check your plan for your exam date.

The last month is also a great time to concentrate on ethical and professional standards. This topic is heavily weighted on all three exams and should not be overlooked as the questions are very difficult for most CFA candidates. Get the key elements of your study all in one essential 11th Hour Review Course so you’re 100% confident on exam day. Shop Final Review

Preparing for a CFA exam is a big commitment that can easily take over your life. If you find yourself close to burning out or are feeling overwhelmed by the CFA curriculum and your study routine, make sure to schedule extra time to rest and get refreshed.

You might even be able to slow down your pace and still achieve your goals without the added stress. Wiley’s materials are here for you throughout, and we even offer a Facebook group that can help with solidarity and support during your journey.

Overwhelmingly, CFA Charterholders state that preparation is the key to a passing score on each of the CFA exams. It starts with allocating enough study time and coming up with a customized plan.

Then utilizing Wiley’s study guides and reading materials is essential. Two out of three candidates who’ve used a competitor’s product prefer Wiley. You’ll have access to mock exams and a diverse set of CFA practice questions at varying difficulty levels, all with detailed answer explanations. Our personalized course platform helps take your preparation up a notch, with dedicated instructors who teach via video lectures and are available to answer your questions in less than 48 hours.